H-1385.4  _______________________________________________

                          HOUSE BILL 1976

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Lantz, Huff, Mielke, Dunshee and Haigh

Read first time 02/12/1999.  Referred to Committee on Transportation.

Restricting capitalized costs on public projects.

    AN ACT Relating to restrictions on capitalized costs for public projects; and amending RCW 47.46.050.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 47.46.050 and 1995 2nd sp.s. c 19 s 4 are each amended to read as follows:

    (1) The department may enter into agreements using federal, state, and local financing in connection with the projects, including without limitation, grants, loans, and other measures authorized by section 1012 of ISTEA, and to do such things as necessary and desirable to maximize the funding and financing, including the formation of a revolving loan fund to implement this section.

    (2) Agreements entered into under this section shall authorize the private entity to lease the facilities within a designated area or areas from the state and to impose user fees or tolls within the designated area to allow a reasonable rate of return on investment, as established through a negotiated agreement between the state and the private entity.  The negotiated agreement shall determine a maximum rate of return on investment, based on project characteristics.  If the negotiated rate of return on investment is not affected, the private entity may establish and modify toll rates and user fees.

    (3) Agreements may establish "incentive" rates of return beyond the negotiated maximum rate of return on investment.  The incentive rates of return shall be designed to provide financial benefits to the affected public jurisdictions and the private entity, given the attainment of various safety, performance, or transportation demand management goals.  The incentive rates of return shall be negotiated in the agreement.

    (4) No appropriation of public funds for public-private partnerships for state route number 16 corridor improvements or the Tacoma Narrows bridge, or any other expenditure of funds, that came from the proceeds of the bonds authorized under RCW 47.10.834 through 47.10.842 may be required to be repaid to the state from the revenue derived from tolls or user fees imposed on the state route number 16 corridor.

(5) Agreements shall require that over the term of the ownership or lease the user fees or toll revenues be applied only to payment of the private entity's capital outlay costs for the project, including project development costs, interest expense, the costs associated with design, construction, operations, toll collection, maintenance and administration of the project, reimbursement to the state for all costs associated with an election as required under RCW 47.46.030, the costs of project review and oversight, technical and law enforcement services, establishment of a fund to assure the adequacy of maintenance expenditures, and a reasonable return on investment to the private entity.  A negotiated agreement shall not extend the term of the ownership or lease beyond the period of time required for payment of the private entity's capital outlay costs for the project under this subsection.

                            --- END ---